Sustainable Aviation Fuel Market Forecasts to 2030 – Global Analysis By Fuel Type (Bio-fuel, Hydrogen Fuel, Power-to-Liquid Fuel and Gas-to-Liquid Fuel), Production Technology ((FT-SPK), (HEFA-SPK), (ATJ-SPK) and Other Production Technologies), Blending C

Sustainable Aviation Fuel Market Forecasts to 2030 – Global Analysis By Fuel Type (Bio-fuel, Hydrogen Fuel, Power-to-Liquid Fuel and Gas-to-Liquid Fuel), Production Technology ((FT-SPK), (HEFA-SPK), (ATJ-SPK) and Other Production Technologies), Blending Capacity, Application and By Geography

According to Stratistics MRC, the Global Sustainable Aviation Fuel Market is accounted for $1.07 billion in 2023 and is expected to reach $15.02 billion by 2030 growing at a CAGR of 45.7% during the forecast period. Sustainable Aviation Fuel is an eco-friendly alternative to traditional jet fuel, derived from renewable feedstocks. It significantly reduces carbon emissions and pollutants, offering a greener option for air travel. Sustainable aviation fuel meets strict sustainability criteria, contributing to efforts to mitigate climate change and promote environmental stewardship in the aviation industry.

According to the European Union's ReFuelEU Aviation, it aims to boost supply and demand for SAF in the EU, targeting a share of 2% of aviation fuel starting in 2025, increasing to 5% by 2030 and 63% by 2050.

Market Dynamics:

Driver:

Growing awareness about climate change

Increasing global awareness about the urgent need to address climate change is a key driver for the sustainable aviation fuel market. The aviation industry is a significant contributor to greenhouse gas emissions, and there is mounting pressure from governments, investors, and the public to reduce its carbon footprint. This is spurring demand for cleaner alternatives like sustainable aviation fuels, which can substantially lower lifecycle emissions compared to conventional jet fuel.

Restraint:

Limited infrastructure

The current lack of widespread production and distribution infrastructure for sustainable aviation fuels is a major restraint on market growth. Refineries need to be retrofitted or purpose-built to produce these fuels at scale, requiring significant capital investments. Additionally, airports need specialized storage and fueling systems to handle sustainable aviation fuels. Until this infrastructure is built out more extensively, supply will remain constrained.

Opportunity:

Technological innovation

Rapid advancements in sustainable aviation fuel technology present a major opportunity for the market. Innovations in feedstocks, like waste oils, agricultural residues, and even captured CO2, could greatly expand fuel production potential. Additionally, breakthroughs in conversion processes like alcohol-to-jet and power-to-liquid could improve efficiency and reduce costs. As these technologies mature, sustainable aviation fuel could become increasingly price-competitive with conventional jet fuel.

Threat:

Competition from conventional fuels

Persistently low prices for conventional jet fuel, derived from crude oil, pose an ongoing competitive threat to sustainable aviation fuels. Airlines operate on thin margins and are highly sensitive to fuel costs. If the price gap between conventional and sustainable fuels remains wide, it will slow adoption, which will have a negative impact on market growth.

Covid-19 Impact:

The COVID-19 pandemic has had mixed impacts on the sustainable aviation fuel market. Global air travel demand plummeted in 2020, reducing overall jet fuel consumption and, therefore, demand for sustainable alternatives as well. However, the crisis has also heightened awareness about the need for a ""green recovery"" in aviation. Many airlines have reaffirmed or even increased their commitments to sustainable fuels as part of their post-pandemic environmental strategies.

The bio-fuel segment is expected to be the largest during the forecast period

The biofuel segment is poised to dominate the sustainable aviation fuel market during the forecast period. Biofuels are derived from organic sources and are a are a renewable and environmentally friendly alternative to conventional jet fuels. With an increasing focus on reducing carbon emissions and stringent regulations promoting sustainability in aviation, the demand for bio-based SAF is expected to surge. Technological advancements and growing investments in biofuel production further support the segment's growth trajectory, making it the largest contributor to the sustainable aviation fuel market.

The business aviation segment is expected to have the highest CAGR during the forecast period

The business aviation segment is poised for the highest growth rate in the sustainable aviation fuel market. Business aviation companies are increasingly focusing on corporate sustainability initiatives, seeking to reduce their carbon footprint. Additionally, regulatory pressures and consumer demand for eco-friendly travel options are driving the adoption of sustainable aviation fuel in this segment. Moreover, advancements in biofuel technologies and the availability of incentives further support the growth of sustainable aviation fuel in business aviation.

Region with largest share:

North America is set to dominate the sustainable aviation fuel market due to several factors. The region boasts robust regulatory frameworks promoting sustainable aviation and has a mature aviation industry with a strong emphasis on environmental responsibility. Additionally, there is substantial investment in biofuel research and development, coupled with growing support from government initiatives and incentives. Furthermore, the presence of key market players and strategic partnerships further solidify North America's position as a leader in the sustainable aviation fuel market.

Region with highest CAGR:

The Asia Pacific region is experiencing rapid growth in the sustainable aviation fuel market. With a burgeoning aviation sector and increasing air travel demand, countries in the region are prioritizing environmental sustainability. Government initiatives, such as incentives and regulations promoting the adoption of sustainable aviation fuel, are driving market growth. Additionally, growing awareness of climate change and the need for greener alternatives further propel the demand for sustainable aviation fuels in the Asia-Pacific region.

Key players in the market

Some of the key players in Sustainable Aviation Fuel Market include AltAir Paramount, LLC, Eni S.p.A., Fulcrum BioEnergy Inc., Gevo, Inc., LanzaTech, Neste Corporation, Northwest Advanced Biofuels, LLC., Red Rock Biofuels, REG Synthetic Fuels, LLC, Renewable Energy Group, Inc., SG Preston Company, SkyNRG, TotalEnergies, Velocys plc, WasteFuel and World Energy Houston LLC.

Key Developments:

In January 2023, Plenitude, through its US subsidiary Eni New Energy US Inc., has signed an agreement with global energy leader EDP Renováveis, S.A. (""EDPR""), to purchase an 80% equity stake in a portfolio of operational photovoltaic plants located in the United States.

In December 2022, Fulcrum successfully produced a low-carbon synthetic crude oil from landfill waste at its Sierra BioFuels Plant, the world's first commercial-scale waste-to-fuels plant.

Fuel Types Covered:
• Bio-fuel
• Hydrogen Fuel
• Power-to-Liquid Fuel
• Gas-to-Liquid Fuel

Production Technologies Covered:
• Fischer-Tropsch Synthetic Paraffinic Kerosene (FT-SPK)
• Hydroprocessed Esters and Fatty Acids-Synthetic Paraffinic Kerosene (HEFA-SPK)
• Alcohol-to-Jet Synthetic Paraffinic Kerosene (ATJ-SPK)
• Synthetic Iso-Paraffin from Fermented Hydroprocessed Sugar (HFS-SIP)
• Catalytic Hydrothermolysis Jet (CHJ)
• Other Production Technologies

Blending Capacities Covered:
• Below 30%
• 30% to 50%
• Above 50%

Applications Covered:
• Commercial Aviation
• Military Aviation
• Business Aviation

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2021, 2022, 2023, 2026, and 2030
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements